Overall, pricing for catastrophe covers rose 20 percent compared to January of 2006. “But pricing is well below risk loads and margins of July 1 of last year,” he said.

Most capital market players prefer to invest in start-ups and recapitalization of existing carriers, Mr. Goldberg said, rather that going into sidecars and catastrophe bonds.

“These people are not comfortable with catastrophe modeling and the like. They would rather put their funds with people who are,” he said.

In the same vein, Nebraska Insurance Director Tim Wagner expressed concern about the evanescent nature of such new capital, believing it could pose future problems of stability.

Bermuda is playing an increasingly important role in funneling new capital into the reinsurance markets, said the island's chief insurance regulator, Jeremy McCarter. He noted that Standard and Poor's lists 12 of the world's top 40 reinsurers as based in the former British colony.

Part of the reason for Bermuda's growth has been an acceptance that the Bermuda Monetary Authority maintains rigorous oversight of the companies domiciled there.

“We continue to have higher levels of scrutiny for large reinsurers,” Mr. McCarter said.

Within a few weeks, the Authority will release an enhanced risk-based capital model to further solidify its reputation in this area, he said.

While property-catastrophe covers remain the island's mainstay, Bermuda's companies also offer casualty reinsurance cover and primary coverage in greater quantities, said Mr. McCarter.